66 thoughts on “CHARTS OF THE DAY – Miners and Commodities”

  1. Gary Post author

    Markets can stay irrational for a long time, but they can’t defy the natural laws of the universe forever.
    Central banks have printed trillions and trillions of currency units. As much as we would like to believe this is a get out of jail free card, there is going to be a price to pay for this reckless monetary policy. We are going to have a period of extreme inflation, and I believe it will start with the bursting of the bond bubble, which I believe has now begun.

    The deflationists can live in their fantasy world but the simple fact is that once we left the gold standard, and all currencies became fiat, deflation became a thing of the past. Look how quickly Roosevelt stopped deflation when he went off the gold standard in 32, or how quickly Bernanke stopped deflation when QE1 began.

    In our modern world, if a government is willing to sacrifice their currency, deflation is a myth. One has a better chance of spotting a unicorn.

    1. Emptyness

      Gary, I also see golden times for gold because of all the printed fiat money. But I’m skeptical with your assumption, that the bond bubble is going to burst. Look at Europe and Japan: The ECB and the BoJ are buying bonds with newly printed money to fix interest rates near zero. They do it again and again. At the same time the FED can’t tolerate strongly rising interest rates, because a much stronger Dollar would kill US economic growth. That’s the reason why I think the FED will prevent the bursting of the bond bubble.

      1. Gary Post author

        I think that’s the catch though. In order to prevent the bond bubble from bursting they will have to print even more trillions and that will eventually destroy the dollar.

        It’s always been my expectation that the end game would come in the currency markets.

        1. Jacob

          Totally agree, it’s just when. I would have bet someone everything I owned 5 years ago that it would have blown by now. Luckily for me what I invested in gold 5 years ago I have not needed (and do not need) to sell. But the waiting……

  2. MegaMind

    IMO gold may be creating a double top and could go down to 1150 to form a double bottom. If it rises at 1150, it could easily hit the top of the trend line at 1300 by April. I see strong support at 1150 no doubt about it but also strong resistance at 1300… this lines up with your projection for the triangle consolidation gary…

    1. Gary Post author

      It’s probably way too early in the intermediate cycle for a move back down into the mid to low 1100’s.

      I’m expecting a move above $1300 by April and then an ICL back down to the lower triangle trend line during the summer (when gold usually finds a bottom).

      Multiple tests of resistance usually result in a breakout.

      1. Pedestrian

        Very unlikely Gary. Gold has already been trending up for nine weeks (since middle December) with only two modest corrective declines during that whole time. And on the face of it would appear a bullish channel has been formed.

        But if you buy it now you are going to lose money because we have already peaked in this precious metal run-up. In other words, past performance is not a good way to calculate future returns. We are actually overdue to decline and at this stage that’s exactly what we are going to get.

        So buyer beware. Gold, silver and platinum are soon going to be heading down.

    1. ras

      Indeed. But, there is another resistance level to overcome (September high) before reaching the August high. Likely, a bit of pause and pull back at September high and then a revisit to August high? Time will tell.

      We have seen 8 days sideways consolidation. Add another 4-6 days to yield 12-14 days, close to the preceding consolidation. This would coincide with your estimate for a likely low next week. Time will tell.

  4. Strike

    Gary – Great charts. Viewing monthlies are like stepping back and observing the entire forest. Thanks.

    1. Gary Post author

      Definitely moving in that direction. We need to get the public to pile in and we need a parabola to form.

      It usually takes about a year to a year and a half for the final bubble to complete.

  6. Gary Post author

    We are seeing the same disbelief in the metals sector right now as we did in the stock market in 2009. No one could envision any fundamental reason that stocks could possibly be starting a bull market at that time even though the fundamental reason was staring them right in the face in the form of QE1.

    The same thing with the bottom in the dollar in 2008. No one could see any way that the dollar could possibly be starting a bull market with QE1 beginning.

    Now we have swung 180 degrees in the opposite direction. Now no one can envision any rational reason for the dollar to fall even though the fundamentals are basically the same now as they were in 2008.

    Bull markets start on disbelief, and bear markets begin from extreme complacency.

  8. Pedestrian

    You are reading the silver chart incorrectly Gary.

    Go to a monthly and take another look. There is a mirror pattern in play.

    So the bear market rally peak of 2016 has a counterpart in the year 2008. You cannot chart silver properly without taking that into account and a channel is not the correct way to draw your final conclusion. We should see a considerable decline yet based on that mirror pattern that has already been in play since at least 2004.

    Lets talk again when silver sees 10.00 dollars.
    http://finviz.com/futures_charts.ashx?t=SI&p=m1

    1. WallStreetJesus

      Haha I looked at that chart. Silver did drop $5 the last time the commercials were this short.

      The only problem I see is silver hasn’t had any big range up days lately. It would seem we would need some big range up days (exhaustion) to reverse the move and head lower. The move up in silver has been slow and steady which isn’t generally how silver moves.

      Who knows if these commercial silver traders will be right. They are betting we are closer to the end of the move than the beginning based on their extremely short position.

      I wouldn’t count the dollar rally as being over either.

      1. Pedestrian

        Exactly Jesus. Glad you looked. Silver has already terminated its up-move by my way of charting. If it had a few more cents in it then no big deal but we are ready for the fall. Gold too sorry to say. The bulls don’t want to hear that of course so lets just wish them well and leave it at that.

  9. Steffmeister

    I am seeing a top in stockmarkets much sooner than a year from now, how about April-June 2017?

    What if the bond market has topped and the stockmarket is about to top, were are all the money going to flow, towards commodities, to gold&silver?

    Talking about silver I tried to sell a penny stock called Castle Silver Res, all week but failed until Thursday, I just threw all my stocks straight into the bid at 23c, a lucky strike +689% in a month 🙂

  10. bill

    This is why I remain in the turkey camp and this is why I added 2 lots yesterday in anticipation of a OP-X drive bye… long and strong.

    1. WallStreetJesus

      We will have to see how “long and strong” you are after the next decline. Big drawdowns are part of turkey investing. Unfortunately when the big drawdown comes investors end up bailing right about the time it turns. Gest of luck with your upcoming drawdown and I hope you have the stomach to hang in there because most don’t.

      Remember only 2 1/2 months there wasn’t a gold bug to be found anywhere. Lowest sentiment readings in decades. Now we have a gold bug infestation.

      Silver has been up 7 or 8 weeks in a row. There will be a red candle coming soon. We will probably see $17 silver before we see $19. In the grand scheme of things I think we will see $30 silver in 2018 so remaining long and strong is the correct long term strategy. That’s where the big money is – long and strong, however holding thru the drawdown is something most can’t stomach.

      1. Gary Post author

        Actually the bullish sentiment in gold is still pretty tame at 55% bulls.

        At the top last summer it was 78% bulls.

        We still have plenty of room to rally before we need to worry about running out of buyers.

      2. bill

        You short players are all the same ” we’ll see how long you are after the next decline ”
        Sure when? In the mean time keep racking up those loses and praying to be made while again, when will thst be? Who knows your shorts just keep extending the coming decline to fit your narrative, never any time frames … again YAWN!!

        1. Pedestrian

          I have not told you my recent positioning Bill nor whether I even have an active trade in gold. Meanwhile you might want to check the rhetoric at the door. I’ve been in precious metals markets since the 1960’s so I might just know a thing or two that’s escaped the attention of you guys like you who only know one side of the trade.

  11. bill

    Funny thing I’m still reading 120 dollar, won’t the many be shocked to see gold rise lock in step with the dollar… we shall see.

  12. Steffmeister

    mmmm be careful Bill, the golden bear is still alive, an interesting read from my Irish friend:

    About the LOW in Gold:
    So was end of 2016 it?
    I’m not sure about that. A retest needs to be some cyclic period later after the original high or low. If I chose a business cycle (as it remains after coordinated central bank attempts to overcome it) then the retest would be 3-4 years after the first low. If alternatively the dual political cycle (parties dominate propaganda and money so well that they get two terms instead of one before the public wakes up and chucks their asses out) is the dominant one, then a period of eg 8 years may be required after the first low to create the retest and/or possibly divergent second low. There’s that eight year period coming up again.

    But the attention span of gold trading people is so short that eg a four year rise followed by eg a four year fall will always be designated as a bull market followed by a bear. In fact, the observable tendency is to lose perspective after less than twelve months. Which means that the rally off the 2015 lows gets to be a bull swing. But inside I’m, like, “Hmmmm, that’s a nice bear market pullback there”.

    And so it all goes back to perspective and scale, as it always does. I can’t remember who said it but the gist of the old market saying was “When you’re in doubt, throw your chart on the floor and get up and stand on your desk. Then look down at the chart to see what you couldn’t see before.”

    Which in my view is bearish for gold for a little longer (for the short of attention span) and bullish then bearish then very bullish for gold (for those who are in my particular scale of groove in Setup). But since we all make mistakes, it’s unwise to sell all at the tops in case it takes off (on a bigger scale) nor to decide there will be no more bottoms where good value can be found (in which case we go crazy and sell the house/car/wife/kids to buy gold as the bullion dealers and their article-writing-podcasting-bull-analysts perpetually (provide stimulation to do) .

    So what is “acceptable” perspective? Well, the last big gold bull took 11-13 years depending on which low you count from. And we got two major highs depending upon which currency you prefer to use to value gold. I know 95% of everybody out there uses the dollar only but I think that’s myopic. Say we use 2011 for the high. A 11 year bull. Now if we add (only!) eg 8 years down, that would take us to 2019. So if both a four and an 8 year cycle had been, shall we say “cancelled” by the central bank alliance, when would their battles with reality occur? Well our attention might fall upon 2011 + 4 = 2015 (check, gold low visible) and also 2011 + 8 = 2019 (not there yet be patient and don’t panic).

    And what we also see is a dollar index playing games with alternate fiat currencies for breakout or not. But that is a see-saw mechanism. I have proposed that the dollar is ony half of the equation vs gold. And the other non-dollar USDX currencies are the other half not to be put opposite the dollar, but to be added to the dollar and all fiat together to then be weighed vs gold (and other commodities).

    Now the freegold people say we should look at gold vs oil. That is the gold:oil ratio is persuasive for them. This is implying that oil = all fiat currencies, and in particular the dollar. Or it will revert to that every “x” many years. Hmmmmm. This is dependent upon military might enforcing reserve currency-ness methinks. So it’s historical and may or may not be … currently applicable. I have referenced a few freegold proponents here at Setup, but I never endorsed the thesis, while considering it always worth considering. I watch that ship closely but haven’t yet stepped aboard, you might say.

    You see I never forget that gold is a commodity as well as a currency. Freegold focuses upon the one side a little too much, while admittedly not denying the other side. I find my thoughts drifting to military, territory held recently acquired and recently lost, state of empire and such matters at this point within a freegold discussion.

    But freegold will assert itself when currency crises arise. Ideas return to the fore when situation requires it. And Bretton Woods is now 2017-1945 = 72 years ago. What periods matter around that cyclic duration? Seventy two, seventy four, seventy five and seventy six in my view. So: 2017, 2019, 2020, and 2021. OK then.

    Back to the gold and the best times to buy some, or not buy some: I posit that these times will be at two year anniversaries of the gold high for the currency you prefer to use, and also at an anniversary at which gold it observed to be making lows amid low sentiment. End 2015 followed by end 2016 are only one year apart. As 2011 and 2012 were. A double top followed by a double bottom?

    Scale. Fractals. Perspective. If I throw a gold chart, metaphorically, on the floor and climb, also metaphorically speaking, upon my desk and look down. That’s a single top and a single bottom. Where is the retests? There not big retest of the top (we may go back up someday) and there’s no retest of the 2015 bottom (uh oh, early gold bulls will get spanked by the various opposite parties out there).

    So it’s back to bottoming pattern construction, upon a big scale. And let’s not get overly choosy about which spike downwards must be designated at “THE ONE” . Back to that 8 year pattern, and never forget the presence of year cycles (stocks and bonds) while doing it. I posted on the eight year cycles many times, with extended descriptions in the AM blog. Those proposed paths forwards, set out back then are currently being followed reasonably well. In particular, multiple lows usually required to see an eight year gold weak price period through. Think in 2, 4, 8 year periods and range trade accordingly. There’s more to it than that of course. But it may help to keep a person out of trouble.

  13. dboz

    Take the time and read this guy. I think Gary is correct. Combined with reading this article. Still far too many bears left. Only the gold guys as Ped likes to say have been buying. Zero market money or big money has come into the sector. All you have to do is compare volume on individual miners moving up now compared to the volume last year. Just look at the bearishness on this blog. Much more beat down and the sector will be bankrupt. The participation is already low. Now some here are calling for another $100 haircut. We just had selling for 5 months and a 6-7 week bounce and the calls are still for more blood must be shed? From who? The remaining bugs left holding? Do you really think they will capitulate? Speculators have been gone for months. I am with Gary and Bill. Sticking with upside. Things can surely go lower. There are no guarantees. I pulled from the market last year. It’s been frustrating watching the climb to ATH based on nothing but hope. A major world event could happen at any time. Nothing phases the SM any longer? Nothing. No fear. Zero. No one believes they will ever let it fall. I am holding. Foreign countries tell their people to buy gold. There is simply not enough to go around should any panic buying in PMs ever come.

    http://seekingalpha.com/article/4047228-gold-stock-bullish-volume-divergence

  14. Gary Post author

    It doesn’t matter what the bottom looks like the vast majority of traders won’t recognize it, or believe it when it happens. Why? Because the preceding bear market has convinced them that price only goes down, and they can always find an excuse or reason for why price should go down a little bit further.

    It won’t matter what the top looks like, the vast majority of traders won’t recognize it, or believe it. Why? Because the preceding bull market has convinced them that price only goes up.

    It usually takes 2-3 years before most traders finally accept a bull market.

    And it usually takes significant losses and a considerable time below the declining 200 DMA before most traders finally understand a bear market has begun.

    Only a very few exceptional traders willing, and able to adapt to a major trend change catch these turns at the very top or bottom. Those are the traders that make fortunes if they also have the discipline to hang on for the full ride up or down.

    1. Gary Post author

      FWIW I think we have clearly started a bull market in precious metals. Probably started a bull market in commodities.

      Almost certainly started a bear market in bonds.

      And maybe starting a bear market in the dollar.

      Stocks still have to produce a bubble phase before I’ll be ready to look for a top in that sector.

        2. zbigkid

          The fact that you can’t see it Ped, has me convinced that gold and silver will be exploding higher. Much higher, come March and April. You’re a great fade.

          1. Pedestrian

            The existing falling channel on gold projects way below 1000 dollars and that’s a fact, Jack. We have no evidence that the current bear market will end anytime in the next decade either except for the usual gold-bug bleating that is must happen.

            Whether we get below 1000 again anytime soon remains to be seen but the charts are fairly clear on this and don’t forget we have ALREADY seen silver and gold go parabolic once in the past few years and twice in the last forty. The recent parabolic peaks were left translated as well.

            Let that sink in for a second.

            Cycles tell us that a very long bear market awaits interspersed with the usual rallies. The bad news for you guys is that gold may not see its prior highs again for another three decades. Just as the major tops between gold in the past half century were separated by a period of 31.4 years.

            Do the math yourselves if you doubt me.

            That three decade separation incidentally is a PI date and I assure you its no coincidence. I independently discovered the significance of that date recently based upon writings of Martin Armstrong and was amazed at how nearly perfectly times the two major tops were separated by Pi.

            So you need to open your minds to this idea.

            I am not saying any of this to be argumentative. But the odds of a serial parabolic rise are infinitesimally small. You will be at pains to find any such instances after reviewing a great many charts.

            But in the spirit of expanding our knowledge base here I encourage you to do just that. Show me where ANY commodity has gone into a bull market followed by a parabolic blow-off peak such as silver did in the 1980’s or 2011 and then immediately afterwards repeated the event.

            If you do find such a case ( and they do exist) keep in mind that the second peak if its located too closely in time can almost always be qualified as a very bearish double-top and not a new bull market.

            And as a final remark Zbigkid, your comment does not have any content as is common with most goldbug posts. It is just bullshit and bluster intertwined with a personal slight masking as idiotic bravado.

            You will be wrong as well. So I probably can’t teach you anything.

        1. Emptyness

          @Ped
          So many words for what ? Don’t you see the endless fiat money printing ? Don’t you see the world full of debt ? Don’t you see inflation is coming ? And so on ….. Your ideas are (excuse me) nonsense.
          There is absolutly no reason, why gold should fall below 1000. Quite the reverse, gold is very very cheap. It will rise for years.

          1. Pedestrian

            Yes I see the printing. What you probably don’t understand though is how to read the data. The monetary base is actually in contraction right now (deflationary) and I can prove that with a link to a chart from the Federal Reserve of St Louis of the Adjusted Monetary Base.

            https://fred.stlouisfed.org/series/BASE

            What many in the gold community fail to appreciate is that a great deal of the so-called printed money is held by the Federal Reserve in the form of “Excess Reserves” for which modest interest payments are made to the owners of that money.

            It is not money that is in circulation and it cannot therefore be inflationary.

            That portion of the monetary base is (at least in theory) available for lending and credit expansion but as you know consumers are already tapped out and over-extended while business is more concerned with hoarding capital and buying back its own shares rather than ramping up new factory production.

            So if you only look at the chart of the expansion of the M1 monetary base you will be left with a false impression that a great wave of inflation must be just around the corner.

            And you will be wrong.

            Secondly, when you point to excessive debt you won’t get any disagreement from me however you should also be aware that when debt becomes onerous to the point of unrepayable in a low growth environment that the conclusions are virtually always the same.

            That is we will see defaults and a reconciliation of balance sheets unfold until the excess of the past has been burned off. And this is without question a deflationary experience as its usually one that takes place within a period of recession, negative growth or outright depression.

            So a contracting monetary base at this time is a refection of a strengthening dollar, an unwillingness of lenders to extend new credit and and an inability of consumers to take on more debt.

            From a macro perspective it is more than a little worrisome especially as an extreme low rate environment has not been entirely successful is encouraging the needed levels of new credit to spur further growth.

            Is that too many words for you too?

            Then move on to another post where you can get the Twitter version from a grunting Neanderthal gold bug with the chart ready skills of a Ground Squirrel.

  16. ras

    Occasionally, there is mention of shorting sm on this blog. Looks like sm is propped by a handful of HW tech stocks. Unable to see a sell signal in any bp indicator of any major market index: compq, ndx, nya, oex,spx, nasi,nysi, etc.

    1. Pedestrian

      There is a signal. We shall correct in SM’s this coming week. Metals and miners should all be going down together.

  18. MegaMind

    at closer inspection, it is probable that HUI is forming a new uptrend… the bottom of the new uptrend channel is at 185 which is about 14% down… highly possible that would be tagged before going to top of the channel at 230…

  19. VMA

    Hi all. Done lurking and decided to join in. I’ve taken my lumps in the PM sector over the last few years waiting for reason to catch up to reality-the credit based system is terminal. Really enjoy the community here and want to thank you Gary for hosting the forum. The bond bull is over, but I don’t see a collapse. I agree with Ped that the dollar is in a bull market and probably headed to at least 120-130. I also think that is what will kill the dollar as a primary reserve-it gets too strong. This happened in the mid 80’s and the Plaza Accord resulted in a coordinated effort to pressure the $ lower. The difference from then and now is the insane worldwide debt level denominated in $’s. A strong dollar is causing problems now and will cause raging inflation for all foreign nations carrying dollar debt. Gary, I saw you take a lot of flak at the Goldbugspray blog. Hang tough and don’t let em get to you. PM’s are the most emotional and hardest to be in-because contrary to what anyone says, it’s (as Greenspan said) ” the currency par excellence” i.e. best money. We are in the transition when gold and the $ will start to go up together with gold leading. Look at the relative strength (price) of gold now compared to when the $ was last at the 100 level in the early 2000’s. I also wanted to post this for anyone who hasn’t seen it. Unbiased and insightful…
    http://www.acting-man.com/?p=48621

  21. ocram

    I think the most shocking and unexpected event would be a rise together of gold and $US .
    Will this happen? probably not but
    99% of people is betting for a rise of the dollar and a crash of gold or the inverse.
    The only REAL unexpected event would be a rise together of these two mortal “enemies”.

    1. Pedestrian

      Or a fall together if that is the new correlation.

      The sword cuts both ways in such cases and its not always bullish for gold.

  22. Emptyness

    @Ped
    Thanks for your article about the monetary base of FED. Sounds correct. But don’t forget: The USA (FED) is only a part of the financial system of the world. The ECB and the BoJ are printing fiat money and buying bonds all the time. Look at the development of money supply of the ECB:
    https://de.wikipedia.org/wiki/Geldmenge
    It’s german, but you can read the numbers – great, isn’t it ?!
    And all this printed money will never lead to inflation ??? I don’t think so.

    2. Pedestrian

      You will get inflation in the EU. There is no question at all about that given the level of currency devaluation as a partial result of the ECB debt monetization and LTRO program in conjunction with serious political hazards that makes the Euro a currency weighted with risk.

      But it is inflation induced by a loss of purchasing power (currency devaluation), not one driven by shortages or rapid growth. So in the classical sense of inflation there are not “too many dollars chasing too few goods”.

      On the contrary there is more than sufficient supply of everything. But this kind of inflation in a low growth environment is hardly investable because at every turn it just creates economic pain because it kills disposable income and further depresses the economy.

      I am talking about stagflation in Europe (of course).

      Indeed, it is the devaluative process underway in Europe that is substantially behind the strength of the US dollar due to the heavy weighting in the calculation of dollar worth. Obviously this could be remedied by reducing the euro’s 60% weight but that would be entirely arbitrary and probably not acceptable to most parties.

      A new global currency accord may be needed and in all likelihood the number of currencies the dollar is indexed against should rise. For example, Mexico and China are both currently very large trading partners of the US yet their currencies are not included in the index basket.

      Knowing that you may appreciate why so much attention has been bestowed on those two countries by the current and past administrations therefore and why there are frequent threats to call them currency manipulators. It is because it is virtually inevitable both will eventually succeed in partnering in whatever new index arises.

      This is important because of the 6 currencies currently used to calculate dollars, five of them have global reserve status. Those are yen, euro, sterling, swissy and Canadian dollars. So it stands to reason that the inclusion of Peso’s and Yuan might also confer some privilege and in that light there is already a fight to have those two nations value their currencies more in line with standards acceptable to included members.

      Don’t be surprised if Yuan is in that basket in the coming years and euro has been reduced to a much smaller percentage component. We may well have an international currency crisis before any of this comes about but a dollar trading at 1.30 will most certainly cause economic spasms across the globe and could lead a dreaded sovereign default cycle.

      Actually, I think its unavoidable at this stage given most sovereign debt is already at the stage of being so excessive it is unrepayable. This is a good time to start preparing in case your pension plan crumbles. We are in the last stages of a credit bubble and these do not ever end well.

      The implosion of debt bubbles is deflationary though. On this point the record is unequivocal. All of the so-called money printing and bond buying that has happened to date has done little more than delay the inevitable while bringing about precious little inflation that might otherwise have reduced the heavy global debt burdens.

      So I am sorry to have to tell you but the outcome of all this, (and that includes the inflationary process underway in Europe), is going to be a deflation of very serious proportions and pretty much nobody will escape the consequences anywhere in the world as the major economies face reality simultaneously.

      We are merely in the eye of the storm right now.

      1. Emptyness

        Well done Ped ! I can’t give you an appropriate answer, because my english isn’t good enough. But I agree with you – and stay a gold bug. Why ? Look at the financial crisis at 2008 / 2009, there we saw a deflationary process with crashing markets and gold lost about 25 % ….. but after that Gold rallied for years. Inflation is good for gold, but deflation too. Doesn’t matter. So or so, Gold will rise for years again !

      2. VMA

        You’re assuming the dollar doesn’t get devalued against gold as happened in the 30’s deflation. I think it will be the last and only recourse to prevent currency chaos. Deflationary collapse will not happen under this scenario….

        1. Pedestrian

          That is possible and I have certainly considered it VMA. The idea is more problematic this time around though since gold is more widely dispersed among Central Banks and the public than it was back in the Thirties. At that time it was still possible for the US to dictate the gold price (and by virtue the value of the dollar) by vaulting a considerable percentage of the total above ground stocks and making it illegal to possess.

          We are living in a different world now though and its much more globalized. Currencies including gold are traded around the clock in every country of note and so the process to revalue dollars versus gold in a controlled manner (fixed price) could only be accomplished today with the cooperation of the worlds other major gold holders and Central Banks.

          Russia, China, Germany, Netherlands, India, Japan and Switzerland would all have to be at that table as would many others. In such a setting the US would not have the bargaining power it might prefer as it would be subjected to the demands of the major gold holders.

          I suspect a revaluation will happen another way that is more politically acceptable to the Fed, Treasury and Government although exactly what that would look like I don’t know.

          But in the absence of a new currency accord it could be the public that makes the final decision. And that would be if buyers and sellers unilaterally bid up precious metals entirely outside the boardrooms and away from the control of the worlds Central Banks.

          I suppose that could happen. I really don’t know. But anything is possible if the system gets unhinged in the next few years. Its already my contention that a collapsing euro will drive substantial physical gold sales in Europe in the next few years.

          If it is enough to create shortages then my bearish bias will turn out to have been wrong.

  23. ARends

    Here a eliot wave and market specialist said that SM has played out in a very clear wave pattern! That the final leg could en in a month or year. The fact is that the bear market follows from 1994 & 2009 being a huge correction. So even if the interference has been made it was very limited in the market that will pay the piper.
    http://www.elliottwave.com/US-Markets/US-Markets-The-BIG-story-everyone-missed-in-2016-and-what-it-means-for-you-now?sc_camp=7CA0833A6A4941AE8D22E86010F317C3

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